Aurivo has become the latest processor to offer supports to dairy farmers who are struggling on fixed milk-price schemes.
The board of the cooperative took the decision due to the unprecedented increase in farm input costs and the lower returns from fixed milk contacts compared to current market returns.
The move will see suppliers in Fixed Milk-Price Scheme 7 get an extra 5c/L, up from the current guaranteed price of 32.5c/L.
There will be an additional 3.5c/L paid to suppliers who are in Fixed Milk-Price Scheme 8, which currently has a price of 38c/L.
In Northern Ireland, the payment for suppliers in Fixed Milk-Price Scheme 7 will increase by 4p/L and by 3p/L for those in Fixed Milk-Price Scheme 8.
The Sligo-headquartered co-op said that the payment will be reviewed on an ongoing basis and changes will be communicated to suppliers.
The company explained that as Aurivo is contractually tied to sell the milk to its customers at the fixed price, this support is coming directly from co-op funds.
“We appreciate your continued support and trade with the wider co-op to make this support mechanism possible,” the board told suppliers.
Approximately 4% of Aurivo’s milk pool is in fixed milk-price schemes.
The announcement follows similar supports for farmers in fixed price contracts from other milk processors.
Last week, the board of Arrabawn Co-op announced a 5c/L support for the processor’s fixed price schemes for the remainder of 2022.
This, together with other commitments, brings the support for fixed schemes to 6.5c, according to Arrabawn.
Less than 5% of the business’ milk pool is covered by fixed-price schemes, the business said.